The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations ("MAR") (EU) No. 596/2014, as incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

21 November 2022

Beowulf Mining plc

("Beowulf" or the "Company")

Start of Drilling into Majdan Peak Polymetallic Targets in Kosovo

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, is pleased to announce that follow-up drilling, Phase 2, has started into the recently discovered polymetallic targets[1] at, and surrounding, Majdan Peak ("MP"), part of the Mitrovica licence in Kosovo. Drilling will include a short campaign of five diamond holes, followed by another round of drilling in Spring 2023. A total drill programme of up to 3,500 metres is estimated.

Exploration results, from fieldwork, geophysical surveys and drilling, continue to support the case for further investment and work in Kosovo.  The main objective is to discover an economic deposit, and recent findings show the potential of MP and Majdan Peak South ("MPS") and other targets to host economic concentrations of base and precious metal.  Each phase of exploration is adding data and building the picture.

Highlights:

Phase 2 drilling will include:

·    Up to three holes into the MP high-sulphidation polymetallic target, which have been designed to test for:

§ Feeder structures to mineralisation intersected in drillhole MP006 (10.8m at 0.48 grammes per tonne ("g/t") gold, 0.1 per cent copper and 18 g/t silver); and

§ High-grade feeder structures on the eastern side of the MP target based on clay alteration modelling and anomalous gold in rock grab (up to 11 g/t gold), soil (up to 1.2 g/t gold) and drill results at MP014 (10.6m at 0.21 g/t gold) and MP005 (10.2m at 0.25 g/t gold).

·    Two further holes to be drilled at the Majdan South ("MPS") intermediate sulphidation target, which have been designed to test for higher grade extensions to the gold and silver-lead-zinc-copper mineralisation intersected in drillholes MP001 (8.8m at 0.34 g/t gold) and MP003 (36.4m at 19 g/t silver, 0.5 per cent lead and 0.2 per cent zinc).

·    A final drillhole targeting anomalous gold in rock samples (up to 7.2 g/t) and associated Induced Polarisation ("IP") anomaly at the Gold Ridge target.

MP, given the size and complexity of the epithermal system, could deliver several polymetallic  mineralised zones.  While MPS is highly prospective for both gold-silver and silver-copper-lead-zinc mineralisation.

See Figure 1 for the location of the planned drill holes, soil and rock sample assays, IP and results from this year's Spring-Summer campaign.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"It's great to be back in Kosovo this week for the restart of drilling at Majdan Peak and to meet with the Vardar Minerals team on site.

"The announcement of the discovery, in August, of the large polymetallic epithermal system at Majdan Peak was an exciting find and represents a fantastic opportunity for Beowulf, warranting this further exploration campaign. There followed a further announcement in September, with the results of drill intersections for Majdan Peak South and more drill targets, adding to the significant potential of the Mitrovica licence.  The progress this year speaks volumes about the Vardar team, their discovery, and their exploration capabilities.

"This latest drill campaign is designed to test very specific targets stemming from the excellent, and more so, comprehensive exploration work, analysis and interpretation the Vardar team has done following the Spring-Summer drilling. As a group, we are excited to learn more of the potential being shown by the polymetallic epithermal system at Majdan Peak."

Further information on the exploration targets:

Majdan Peak ("MP")

The MP prospect is located in the central portion of the Mitrovica licence area, defined by a zone of intense argillic alteration and capped by an extensive blanket of advanced argillic alteration which forms the ridge tops. Exceptional gold and base metal soil and rock sampling results are associated with the 1400 x 700 metres MP prospect. A full 3D Induced Polarisation and Resistivity ("IP/DC") survey delineated prominent high-chargeability anomalies within the prospect, which provided the first set of drill targets for the Spring-Summer 2022 programme.

A total of 11 diamond core holes, totalling 2,497 metres, were drilled into MP earlier this year.  All drill holes intersected intense argillic alteration with zones of advanced argillic alteration. Abundant pyrite (often in excess of 10 per cent by volume), typical of large-scale epithermal systems, provides the causative source for the prominent IP anomalies. Drill holes were designed using a combination of IP anomalies, soil sampling and outcrop mapping to test a variety of possible target types and to assist with navigation through the larger hydrothermal system.

Based on drill results, alteration and intersected base and precious metal concentrations appear to follow steeply dipping structures which splay out along more porous, mainly volcaniclastic host rocks forming a layer cake of intense and advanced argillic alteration zones. Mineralisation is likely to relate to multiple episodes of hydrothermal activity with distinct assemblages of gold, gold-silver-copper-antimony, lead-zinc-silver and zinc. This finding, together with clay mineralogy and alteration mapping, provides a vector to higher-temperature portions of the system.

According to classic epithermal models, the gold-silver-copper-antimony mineralisation is likely to occur within, and in proximity to, hydrothermal breccias related to feeder structures. The latter are the main targets for follow-up drilling. Given the size and complexity of the system, it is expected that several polymetallic mineralised zones could be identified.

Majdan Peak South ("MPS") and Gold Ridge

Distinct ridges to the south of the main MP prospect define the MPS and Gold Ridge targets both of which are related to the same significant hydrothermal system, which is also responsible for mineralisation at the neighbouring skarn/carbonate-replacement Stan Terg deposit.

A 3D IP/DC survey carried out over the entire prospect in 2020/21 identified prominent chargeability anomalies associated with both MPS and Gold Ridge targets. Both targets have highly anomalous rock grab gold results, with Gold Ridge, in particular, returning several samples with over 1 g/t gold, including one sample with 7.2 g/t gold.

Three holes totalling 644 metres were drilled into the MPS target in early Spring 2022 using the prominent chargeability anomaly to site the hole positions. All three holes intersected intense argillic alteration, with several zones of advanced argillic alteration, along with abundant sulphides including base metal mineralisation (galena, sphalerite and chalcocite). The logged pyrite content correlates well with the position of the IP anomaly confirming the causative source. This target is highly prospective for both gold-silver and silver-copper-lead-zinc mineralisation.

Recent Announcements:

22 August 2022 - Exploration Drilling in Kosovo Discovers Large Polymetallic Epithermal System

https://polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/wvj8epw

8 September 2022 - Majdan Peak analysis generates additional compelling exploration targets and increase the significant 'district' potential

https://polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/xl81vpw

Beowulf's Investment in Vardar Minerals ("Vardar")

Since Beowulf's first investment in Vardar in November 2018, the Company has now committed approximately £3.1 million and owns 59.5 per cent of Vardar. Vardar gives Beowulf exposure to the highly prospective exploration potential of the Tethyan Belt, a major orogenic metallogenic province for gold and base metals. 

Throughout the last four years, the Vardar team has delivered exciting results for both the Mitrovica licence which has several exploration targets, including lead, zinc, copper and gold, and also the Viti licence which is showing potential for copper-gold porphyry mineralisation and lithium. With Beowulf's support, Vardar is focused on making a discovery and results so far in 2022 for Majdan Peak are another step forwards to achieving that goal. 

The world-class Stan-Terg deposit is a neighbour to Vardar's Mitrovica licence (63 million tonnes at 3.5 per cent lead, 2.3 per cent zinc and 80 grammes per tonne ("g/t") silver - based on past production and estimated remaining reserves at the same grade).

Looking to the future, Beowulf has several options as it continues to develop Vardar, which include further investments by Beowulf, or in the event of a discovery the introduction of third-party investors or, if the right exploration package is created and supports a standalone business, then the possibility of spinning-out Vardar. Beowulf is keeping these options under review.  

Figure 1. Locality map illustrating MP, MPS and Gold Ridge Targets along with soil, rock grab and drill highlights. Planned holes for the current 2022 programme are highlighted.  

Qualified Person Review

The information in this announcement has been reviewed by Mr. Chris Davies, a Qualified Person ("QP"), who is a Fellow of the Australasian Institute of Mining and Metallurgy.  Mr. Davies has conducted a desktop review of source documents and data which underpin the technical statements disclosed herein and approves the disclosure of technical information in the form and context in which it appears in this announcement, in his capacity as a QP as required under the AIM rules.  Mr. Davies has visited Vardar's Mitrovica and Viti projects in Kosovo.

Mr. Davies has sufficient experience, that is relevant to the content of this announcement, to qualify as a Competent Person ("CP") as defined in the 2012 Edition of the "Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves".

Mr. Davies BSc (Hons) Geology, MSc DIC Mineral Exploration, FAusIMM, is a Non-executive Director of Beowulf and is an exploration/economic geologist with more than 35 years' experience in the mining sector.

Glossary:

Hydrothermal Alteration - also referred to as wallrock alteration, is a general term that encompasses many processes by which rock-forming minerals are altered due to reactions accompanying the flow of heated aqueous fluids along fractures and grain boundaries.

Induced Polarisation (IP) - Variations in chargeability can be diagnostic, for example, when aiming to characterize a mineral deposit, where the chargeability of the mineralised zone is often higher than the host rock. Often an induced polarization (IP) experiment is performed with the Direct Current Resistivity (DCR) hence they are often called DC-IP survey. Both conductivity and chargeability distribution can be recovered from a DC-IP survey.

Polymetallic epithermal deposits (copper, gold and lead-zinc) form at shallow depths within the earth's crust and are important sources of base and precious metals and therefore constitute highly desirable exploration targets.

Enquiries:

Cautionary Statement

Statements and assumptions made in this document with respect to the Company's current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of Beowulf. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to , (i) changes in the economic, regulatory and political environments in the countries where Beowulf operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) Beowulf's continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) metal prices, particularly as regards iron ore. In the light of the many risks and uncertainties surrounding any mineral project at an early stage of its development, the actual results could differ materially from those presented and forecast in this document. Beowulf assumes no unconditional obligation to immediately update any such statements and/or forecasts.